New Tool in the Toolbox: Tax Disincentive for Vacant/Abandoned Property

HB 2 was passed this session, to authorize counties to create a special property class, and tax rate, for property found to have been abandoned or otherwise left vacant. MACo had supported such a tool, looking toward multiple angles to help address the affordable housing challenge facing Maryland and most of the United States. HB 2 was introduced as a local Baltimore City only bill, but following the House Ways and Means Committee hearings on…

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SCOTUS Rules on Local Impact Fees – Any MD Fallout?

"Impact fees" and related charges on new development to offset growth-related expenses were the subject of a recent US Supreme Court case. Maryland governments use impact fees and similar levies in multiple cases -- do our counties need to worry about this California case creating a ripple effect in far-away Maryland? (Spoiler: no, not really, we're pretty by-the-book here already) The public finance community was engaged when the United States Supreme Court took up a…

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Official Session Wrap-up “90 Day Report” Available from Legislative Services

The annual 90 Day Report, a summary and review of actions taken through the 2024 regular session of the General Assembly. As always, the report provides a thorough review of major policy and fiscal issues considered or enacted through the session. An entire section is arranged county-by-county to show effects of multiple programs and initiatives on each county's fiscal situation. The nonpartisan staff agency to the General Assembly, the department of Legislative Services, has released…

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2024 Session: Recap and Wrap-Ups

Catch up on all of the latest outcomes of the 2024 Maryland General Assembly session with wrap-ups on important county-related bills in each policy area. Maryland’s 446th legislative session convened amidst a substantial concern over the State’s fiscal situation, with weakened revenues and cost increases for many services at every level of government. Despite the budgetary limitations, many policy issues received a full debate, with many resolutions arising from the 90-day annual process. MACo’s legislative…

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2024 End of Session Wrap-Up: Taxes and Revenues

The segments below provide a brief overview of MACo’s work on tax policy in the 2024 General Assembly.  The General Assembly routinely considers proposals to change tax structures, often seeking to stimulate economic growth, encourage beneficial activities, or attract and retain residents. These proposals sometimes focus exclusively on the state’s tax structure but sometimes extend to local revenues. In general, MACo stands for local self-determination. Counties, led by their elected leaders who are directly accountable…

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House, Senate Approve Local-Option Tax Credits to Boost Economic Development

The Maryland House of Delegates passed HB 765, legislation to incentivize economic development and increase affordable housing stock by enabling local governments to enact property tax credits for specified hotel and residential development projects. In addition, the Maryland Senate passed a nearly identical bill, SB 321. MACo supports the bills and generally advocates for legislation providing broad authority to enact tax incentives for revitalization and tax relief purposes. Counties prefer the approach offered by these…

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Mandatory Charter, and Open Incorporation, Both Appear Defeated

Two bills introduced and heard in the House of Delegates dealing with "structure of local government" matters appear to have been passed over for the 2024 session. One would have required all counties to adopt full executive/council charter government, and the other would have removed county review/approval of proposed municipal incorporations. With the "crossover" deadline now behind us, legislation that has not received approval from its original committee appears more likely to be defeated this…

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General Assembly Will Study Ways to Modernize Local Revenue Structures

The Maryland General Assembly will study ways to modernize local revenue structures and grant counties additional tools to meet their communities' evolving needs, stimulate economic growth, and enhance the quality of life for Maryland residents. The House Ways and Means Committee referred HB 919—Property Tax—County Authority to Set Special Rates—to an interim study. The bill, sponsored by Delegate Kris Fair, sought to authorize county governments to impose a separate tax rate on specified subclasses of…

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House Breaks with Senate, Wants to Defend Transportation and Highway User Revenues

As the State budget plan advances through its initial decision-making, a major difference has emerged - as the House of Delegates is advancing a plan to fund, rather than cut, both Highway User Revenues for local governments, and other projects and services poised for cuts by the Administration's announced plan. They expect to advance multiple revenue sources to constitute a transportation funding solution this year, in advance of many cuts that would otherwise trigger next year.…

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2024 Homeowners’ and Renters’ Tax Credit Applications Now Available Online

The Maryland Department of Assessments and Taxation has announced that applications for the 2024 Homeowners’ and Renters’ Tax Credit programs, which saved Marylanders more than $58 million in FY23, are available online. “Our department is committed to helping Maryland’s hard-working taxpayers save money on their rent or annual property tax bill, and strongly encourages all eligible residents to apply for the Homeowners’ or Renters’ Tax Credits this year,” said Director Michael Higgs. “We continue to enhance…

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